Health Secretary Alan Milburn and Local Government Secretary Stephen Byers announced a jointly-funded cash injection of £300 million over the next two years for 50 local authorities, including Reading Borough, West Berkshire and Wokingham District councils.

Reading Borough Council will get £296,000, while West Berkshire Council has been allocated £258,000. Wokingham District Council will benefit from a £204,000 injection.

Colin Maclean, who chairs the Royal Berkshire and Battle Hospitals NHS Trust, welcomed the funding.

He told the board meeting yesterday that the particular problem in this area was the shortage of long-term nursing home beds for patients who would never return home.

He said: "If this money addresses that, then it will be a very good thing.

"If this money is used to support the viability of the nursing home market, and the signals we are getting are that it will, then it will make an important contribution to solving the problem."

Delayed transfers or blocked beds dropped to the low 60s last month.

But last week they had risen again to 71, which is close to the record level of 76 experienced in August.

Earlier this year, Royal Berkshire Hospital held the national record because of the serious shortage in nursing home places in the area.

The shortage is caused by difficulties in recruiting staff and rocketing property prices, which make running a commercially viable nursing home almost impossible.

A Royal Berkshire and Battle Hospitals spokeswoman estimated that the £296,000 paid to Reading Borough Council alone could ease the bed-blocking problem by about 25 to 30 beds.

Mr Milburn said: "Bed blocking is a major problem for all NHS patients.

"Bed blocking leaves people in beds who should be cared for elsewhere and keeps people from beds who need treatment straight away.

"We are determined to tackle this problem, which has bedevilled the health service for decades - so that patients receive the right care in the right place at the right time."

The cash is going to the 50 council areas which are experiencing the greatest problems with bed blocking.

Reading Borough Councillor Pete Ruhemann, lead member for social services, welcomed the extra money.

He said: "It's intended to help bed blocking especially over the winter. It is a very serious problem for Royal Berkshire Hospital but it doesn't just affect Reading. Wokingham and West Berkshire have problems as well.

"In fact all six Berkshire unitaries are in the 50 authorities with the most serious problems in the country.

"This money is obviously going to be seriously helpful in trying to tackle the problem."

He said the council and health bosses were still waiting for formal Government guidance on how to use the money.

Cllr Ruhemann added: "However, we would hope to be able to put some schemes into place before the winter, which is a peak problem area when more people become ill and need care."